PR $9-42($Algo$)$ Preparation of Master Budget $($LO $9-3,9-4,9\mathrm{.}5)$

$[$The following information applies to the questions displayed below.$]$

FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables.

The canned food box $($type C$)$ and the perishable food box $($type P$)$ have the following material and labor requirements.

The following production$-$overhead costs are anticipated for the next year. The predetermined overhead rate is based on

a production volume of $490,000$ units for each type of box. Production overhead is applied on the basis of direct$-$labor

hours.

The following selling and administrative expenses are anticipated for the next year.

The sales forecast for the next year is as follows:

The following inventory information is available for the next year. The unit production costs for each product are expected

to be the same this year and next year.

Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of $40$ percent.

PR $9-42($Algo$)$ Part $3$: Prepare the direct$-$material budget...

$3-$a$.$ Prepare the direct$-$material budget for paperboard.

$3-$b$.$ Prepare the direct$-$material budget for corrugating medium.

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Req $38$

Prepare the direct$-$material budget for paperboard.